Muhammad Waqas Introduction to Global Marketing (Continued) Lecture 2.

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Introduction to Global Marketing(Continued)

Lecture 2

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Recap

• Introduction to Marketing• Introduction to Global Marketing• Reason for Global Marketing• Globalization

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Global Marketing: What it is and What it isn’t

• Strategy development comes down to two main issues similar to single country marketing– Target market– Marketing Mix

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© 2005 Prentice Hall 1-4

Global Marketing: What it is and What it isn’t

NEED TO:• Search for similarities and adjust to differences

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The Development of Global Marketing

• Domestic Marketing• Export Marketing• International Marketing• Multinational Marketing• Pan-Regional Marketing• Global Marketing

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Global Marketing: What it is and What it isn’t

• Global marketing does not mean doing business in all of the 200-plus country markets

• Global marketing does mean widening business horizons to encompass the world in scanning for opportunity and threat

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The Importance of Global Marketing

• For US-based companies, 75% of sales potential is outside the US.– About 90% of Coca-Cola’s operating income is

generated outside the US.• For Japanese companies, 85% of potential is

outside Japan.• For German and EU companies, 94% of

potential is outside Germany.

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Standardization versus

Adaptation• Globalization (Standardization)

– Developing standardized products marketed worldwide with a standardized marketing mix

– Essence of mass marketing

• Global localization (Adaptation)– Mixing standardization and customization in a way that

minimizes costs while maximizing satisfaction– Essence of segmentation– Think globally, act locally

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Standardization versus

Adaptation

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Amsterdam Singapore

Germany

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1-11

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Why Companies Seek Global Markets?

• To respond to orders from abroad• To increase sales and profits• To counter the competitors• To grow• To follow customers• For economic reasons

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Why Study Global Marketing?

• Job opportunities in export business• Job opportunities in foreign-based

companies• Job opportunities in service sector• Emergence of e-marketing

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Summary

• Global Marketing: What it is and What it isn’t

• The Development of Global Marketing

• The Importance of Global Marketing• Standardization versus Adaptation• Why Companies Seek Global

Markets?• Why Study Global Marketing?

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References

• Gillespie, K., Jeannet, J.P. and Hennessey, H.D. (2004), Global Marketing: An Interactive Approach, Houghton Mifflin, Boston, NY.